how to manage with quality control in china?
DESCRIPTION
How to manage with quality control in China? This case will introduce with some typical problems concerning establishment of quality control system which can face any company located in Europe and working with ChinaTRANSCRIPT
How to manage with quality control in China?
e-Learning China Business
This case will introduce with some typical problems concerning establishment of quality control system which can face any company located in Europe and working with China
By Anna Taskaeva
www.china-business-connect.com
@BusinessChina0
e-Learning China Business www.china-business-connect.com
Characteristics of the Company Company “Italiana” finds customers in garments field (especially
for baby and sky jackets). Now company is developing in a positive way. It has to agreement with the factory in Shanghai and with the factory in Dalian.
The experience of the company “Italiana” in China is very short - only 2.5 years and it has one Chinese partner, but she lives in Milan.
For “Italiana” the quality is basic, because it collaborates with the most important companies for baby in Italy, company cannot make any mistake with this kind of customer, but in the past the factory that “Italiana” collaborated already made a lot of mistakes. So it is the reason that company must present on field.
Now “Italiana” is thinking in which way is better to do it, and company should also value the costs, and absolutely check who make the quality control, whether it use the same standard for us to proceed or not. In fact “Italiana” will prepare a practice test to the candidates in Shanghai.
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During these two years “Italiana” has learned many things about the Chinese culture, and has
found it very beautiful and deep under many aspects, but also there are lot of differences between Italian culture and Chinese and this differences must be know, otherwise is not
possible collaborate with this country.
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PROBLEM
Company “Italiana” allowed to connect the factories directly with the customers.
Company “Italiana” want to find a way of quality control in China.
“Italiana” doesn’t have the organization in China for handle customers.
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Requirements of “Italiana” to Quality control system
NOW pay it (him or her) for each mission
LATER (in some months) hire him or her, because “Italiana” will be able to handle more customers directly.
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THE ISSUES
How to establish Quality control?
Where to locateQuality control?
Time
Financial costs
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The Options
Company “Italiana” sets up Representative Office in China
Prosguarantee of the activity
it gives less control to the factorieshelpful for sourcing
new products developmentmore effective logistics arrangements
Cons- rental costs can be very high,
especially in Shanghai and Beijing- Great loss of time
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Where to locate Representative Office?
Shanghai area
SOHO complex
Qingdao area
Beijing
Very expensive rental costs
It is much cheaperBuilding maintenanceInternet and all utilities
The status is not so respectable
in case if invite guests)))
It is a port city between Dalian and Shanghai
Rental costs are much cheaperLivable environment
-You are more respected if your RO located in capital
-You will have the most updated information
regulatory and policies-You can connect with all institutions on the
first hands basis
Very expensive rental costs
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The Options
Recruit QA manager, located in China, who will help to setup RO and maintain it
Use services of merchandising company which works with China for many years
Economize money and time Not so easy to find good services and control
their activity
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The Options
Establish a partnership with different companies in each city or with a national Quality control company like SCS which will do quality control
The main advantage of this option is that “Italiana” pays just for each job (!!! Not giving them salary)
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The Options
Use pre-shipment inspection by the 3rd inspection company
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Plan of actions 1) Set up the RO in Qingdao area and at the same
time establish pertnership with different companies in each city or with a national Quality control company like SCS which will do quality control. Doing this doesn't mean western companies are not as good as the local ones, all “Italiana” wants is to ensure its products will come to the quality it wants and it is important in the long run to build its business worldwide. Company needs a Chinese (agent) to know the cultural context, the mentality and the kind of tricks most suppliers may apply to international traders.
2) Company “Italiana’s” manager in the RO is preferably a Chinese who knows the trades and kinds of trading behaviors existing in China. Also through Chinese manager it is easier to learn from him on various issues about Chinese.
3) The most important issue is to provide company with trained and trusted staff. With careful selection, Chinese emplyees may be very loyal.....
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THANK YOU
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